Amazon quietly lifted quantity restrictions on seller shipments to its warehouses, as the company's supply chain starts to regain momentum (AMZN)

REUTERS/Phil Noble

  • Amazon just removed quantity limits on the number of products sellers can ship to its warehouses.
  • The change comes a month after announcing Amazon would resume accepting non-essential items.
  • Amazon had suspended shipments of all non-essential items to its warehouses in March, in order to focus on more vital products, like medical supplies and household staples.
  • It's the latest sign of easing pressure on Amazon's supply chain.
  • Visit Business Insider's homepage for more stories.

Amazon just took another step toward restoring normal operations.

Sellers on the e-commerce site no longer face quantity restrictions on the number of items they can ship to Amazon warehouses, Amazon's representative confirmed in an email to Business Insider.

The restrictions were put in place last month, when Amazon announced it would slowly open up its warehouses to accept all non-essential items. Amazon had suspended all shipments of non-essential items to its warehouses in March, in order to focus on coronavirus-related products, like medical supplies and household staples.

"We removed quantity limits on products our suppliers can send to our fulfillment centers. We continue to adhere to extensive health and safety measures to protect our associates as they pick, pack and ship products to customers, and are improving delivery speeds across our store," the statement said.

The move is the latest sign of improvement in Amazon's supply chain that faced severe lockdowns due to surging demand for essential products, like face masks and toilet paper, amid the coronavirus pandemic.

In recent weeks, Amazon also brought back certain features it paused during the pandemic, including Lightning Deals and coupons, sellers told Business Insider. 

Denny Smolinski, cofounder of ADEN Branding, an e-commerce consulting agency, said the easing pressure on Amazon's supply chain is a welcome sign. Still, he said, Amazon's fulfillment service, which gives sellers access to its storage space and delivery network, is not 100% back to normal conditions. Shipping time, in particular, is far from getting back to the standard one- to two-day delivery window, he said.

Amazon's CFO Brian Olsavsky said during last month's earnings call that it's unclear when the company would be able to provide the normal one-day shipping to Prime members. He said most of the slowdown is happening in shipments between warehouses, not in the last-mile delivery to consumers. To help improve its supply chain, Amazon announced it's hiring 175,000 more people across its warehouse and delivery network.

Still, sellers are happy about the improvements they're seeing. Jared Bucci, founder of Stay Hungry Digital, an Amazon consulting agency, said this week's removal in quantity limits is leading to direct sales increases as sellers are able to keep more inventory and not have to worry about running out of stock.

"For some of the brands we work with, this restriction being lifted means an immediate increase in sales," he said.

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